Image Source : Mint
In a candid moment on Zerodha co-founder Nikhil Kamath’s podcast People by WTF, Uber CEO Dara Khosrowshahi made headlines by naming Rapido—not Ola—as Uber’s toughest rival in India. The statement marks a significant shift in the country’s ride-hailing landscape, where Ola once dominated alongside Uber. With Rapido’s aggressive expansion and diversified services, the Bengaluru-based startup is now challenging the duopoly and reshaping urban mobility.
Key Highlights From The Podcast
- Dara Khosrowshahi stated that Ola used to be Uber’s main competition, but Rapido has now emerged as the tougher rival
- The comment reflects Uber’s evolving strategy in India, where competition is no longer limited to four-wheeler cab services
- The podcast episode, featuring Khosrowshahi as guest, aired on August 22 and quickly gained traction across business and tech circles
Rapido’s Growth Trajectory
- Founded in 2015 by Pavan Guntupalli, Aravind Sanka, and Rishikesh SR, Rapido began as a bike-taxi aggregator
- It has since expanded into auto-rickshaw and cab services, now operating in over 120 cities across India
- Rapido plans to scale its footprint to more than 500 cities by the end of 2025, targeting tier 2 and tier 3 markets
- The company’s gross order value more than doubled in FY25 to $1.25 billion, up from $500 million the previous year
Competitive Edge Over Ola
- Rapido’s focus on two- and three-wheeler mobility has made it popular among price-sensitive commuters, especially post-pandemic
- The platform offers lower commissions to drivers, reportedly between 0 to 5 percent, compared to Ola and Uber’s 18 to 22 percent
- Rapido’s subscription-based model allows drivers to retain full fares after paying a fixed fee, boosting driver loyalty and retention
- Ola, meanwhile, has shifted its focus to electric vehicle manufacturing and geospatial tech, leading to a decline in its ride-hailing market share
Regulatory Challenges And Public Scrutiny
- Rapido recently faced a Rs 10 lakh penalty from the Central Consumer Protection Authority for misleading advertisements
- The company was directed to discontinue campaigns like Guaranteed Auto and Auto in 5 Minutes or Get ₹50, which were found to be deceptive
- Despite regulatory hurdles, Rapido resumed bike-taxi services in Bengaluru following a favorable court ruling
Diversification Into Food Delivery
- Rapido has launched a beta version of its food delivery app Ownly in Bengaluru, aiming to challenge Swiggy and Zomato
- The app promises lower delivery fees and simplified pricing, targeting budget-conscious consumers
- This move positions Rapido as a multi-service platform, further intensifying competition in India’s tech-driven consumer market
Market Share Snapshot
- As of December 2024, Uber held 50 percent of India’s cab market, Ola had 34 percent, and Rapido stood at 14 percent
- Rapido’s rapid growth in two-wheeler and auto segments is narrowing the gap, with estimates suggesting it now controls 20 percent of the four-wheeler market
- The company’s valuation reached $1.1 billion after a $200 million funding round led by WestBridge Capital in 2024
Conclusion
Uber CEO Dara Khosrowshahi’s recognition of Rapido as a bigger rival than Ola underscores a pivotal shift in India’s mobility ecosystem. With its lean model, regional focus, and expanding service portfolio, Rapido is rewriting the rules of urban transport. As Ola pivots toward manufacturing and Uber consolidates its leadership, Rapido’s rise signals a new era of competition driven by affordability, agility, and innovation.
Sources: LiveMint, Indian Express, Outlook Business, MSN India, Moneycontrol.
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